Trading algorithms are computer programs that use mathematical models to make decisions about buying and selling financial assets. They analyze large amounts of market data quickly to identify patterns and trends, allowing traders to execute trades at optimal times. This automation helps reduce human error and can lead to more efficient trading strategies. These algorithms can be designed for various trading styles, such as high-frequency trading or arbitrage. They often operate on different markets, including stocks, currencies, and commodities. By leveraging technology, trading algorithms aim to maximize profits while minimizing risks associated with market fluctuations.